As far as the foreclosure situation works out I wonder too. This time might really be different because of the numbers. The nation is stll paying for the S&L Bailout of the 80s, and the current number of at-risk residential loans and the extent of price distortion dwarfs that spike. Losing $25,000 in principal on a $150k mortgage loan was bad news back then. I can only imagine what’s going to happen when we’re talking about $150k losses on $600k mortgages. (Which, BTW, only represents a 25% decline).
At the current interest rates and origination fees the lenders are charging, how many $150k losses can they suffer without going down?
